Sanuwave Health Inc. ((SNWV)) has held its Q3 earnings call. Read on for the main highlights of the call.
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SANUWAVE Health Inc. recently held its earnings call, revealing a mixed sentiment characterized by impressive achievements and notable challenges. The company celebrated record-breaking quarterly revenue and significant system sales, underscoring its strong market presence. However, it also faced difficulties in meeting revenue guidance due to market uncertainties and disruptions. Despite these hurdles, the outlook for reimbursement changes remains positive, and September’s performance suggests potential growth on the horizon.
Record Quarterly Revenue
SANUWAVE reported its Q3 2025 revenues ranging from $11.4 million to $11.6 million, marking an all-time high for the company. This achievement reflects a 12% to 14% sequential growth from Q2 and a 22% to 24% increase compared to the same quarter last year, showcasing the company’s robust financial performance.
Significant System Sales
The company achieved a milestone by placing a record number of 155 systems during the quarter. This strong sales performance highlights SANUWAVE’s growing market penetration and the increasing demand for its innovative solutions.
Positive Reimbursement Outlook
Proposed changes in reimbursement for UltraMIST are expected to bring a small increase of $2 to $4, translating to roughly 50 to 100 basis points. This development is viewed positively within the wound care context, potentially enhancing the company’s financial performance in the future.
Strong September Performance
September emerged as the best single month in SANUWAVE’s history for revenue, system sales, and applicators. This remarkable performance indicates a strong recovery after a slow start to the quarter, providing a promising outlook for the company’s future.
Missed Revenue Guidance
Despite the record-breaking achievements, SANUWAVE’s Q3 revenues fell short of the previously announced guidance of $12 million to $12.7 million. Consequently, the company adjusted its annual revenue guidance to $44 million to $46 million, down from $48 million to $50 million.
Market Uncertainty Impact
The uncertainty surrounding reimbursement changes for skin substitute products led to market hesitation, impacting SANUWAVE’s growth plans and capital budgets. This market uncertainty posed significant challenges for the company during the quarter.
Continued Disruption Challenges
The third quarter proved more challenging than anticipated due to ongoing disruptions. SANUWAVE struggled to fully rebound from the slow start of the quarter, underscoring the difficulties faced in navigating the current market landscape.
Forward-Looking Guidance
Looking ahead, SANUWAVE remains optimistic about future growth opportunities, particularly in the hospital market for hospital-acquired pressure injuries. The company continues to focus on building a robust pipeline with larger, more sophisticated customers, despite the adjusted annual revenue guidance.
In conclusion, SANUWAVE’s earnings call highlighted a blend of record-breaking achievements and significant challenges. While the company celebrated its highest quarterly revenue and system sales, it also faced hurdles due to market uncertainties and disruptions. The positive reimbursement outlook and strong September performance offer a glimmer of hope for future growth, as SANUWAVE continues to navigate a complex market environment.